The Incentivization of Tipping with $TIPS, Tipping Your DJ for WEB3
$TIPS is an ERC20 coin with a total supply of 1 billion coins, designed to represent a holder’s loyalty towards attending music events in the metaverse and tipping in Ethereum or other cryptos. This paper outlines the tokenomics of $tips and how it will be used to incentivize the community to support artists and events in the metaverse.
The initial distribution of $tips will be as follows: 25% of the coins will be airdropped to holders on the manifold leaderboard according to the amount tipped during the farming period, 10% will be kept by the DAO treasury, 40% will be locked up for liquidity and 25% will be kept for user reward..
Tips received from shows will be split into three parts: 10% to LP, 15% to ETH staking for yield farming for future shows, and 75% to the artist. The LP portion will be used to provide liquidity on decentralized exchanges to ensure that holders can buy and sell $tips with ease. The ETH staking portion will be used to generate additional yield for future events, and the artist’s portion will be used to compensate them for their performances.
User rewards will be distributed in three prongs. The first prong will be via staking, with a boost available for how much Ethereum was tipped to artists over a certain period. The boost will be calculated based on the amount of Ethereum tipped over the last six months, with higher boost percentages available for higher amounts of Ethereum tipped. The second prong will be via rewards generated through ETH staking. The rewards will be distributed to $tips holders who have staked their coins in an ETH staking pool, with the amount of rewards determined by the amount of $tips staked and the length of time staked. Finally, a portion of $tips received from selling tickets to exclusive metaverse shows, merch for shows, and exclusive tracks only available in $tips will be given as rewards to users.
To farm $tips, a new piece will be dropped on manifold using the new manifold Thanks 🙏: Claims + Tips app every week from 3.28.23 to 4.28.23. Each week, users who have tipped will receive $tips proportionate to their tips given that week, with a bonus modifier for everyone who has collected every week’s drop, whether they tipped or not. The bonus modifier will be calculated based on the number of weeks collected, with higher bonus percentages available for collecting all four weeks.
In conclusion, $tips is designed to incentivize community engagement and support for artists and events in the metaverse. By providing rewards for staking, tipping, and participating in exclusive metaverse shows, users can be rewarded for their loyalty and support towards the metaverse music community.
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